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California 19, Brown 6, China 4, Texas 3, Hickenlooper 3, Mexico 3, Brazil 3, Us 3, Steve 2, America 2, Michigan 2, Oakland 2, India 2, Public Education Nation 1, Nation 1, Ronald Reagan 1, Nissan 1, Intel 1, Ab 1, Obama 1,
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  SFGTV2    [untitled]  

    January 20, 2013
    7:30 - 8:00pm PST  

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give it a fresh flavor. that is the essence of political skill. however, -- [applause] i don't rest there. the last time around, we studied emotion. ronald reagan said of the bill to -- set up the bill to hire the energy commission. california became the leader in energy efficiency. we put in tax credits and policies of the public utilities commission to favor alternative energy, independent power production. which is obvious today. when they promoted code- generation it was something very novel. 30 years ago. now you have a different name for a period in his third party
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power production using power in a driving way to recapture the most efficient way. innovation is important. i have to also, every time we heard the word innovation, i have to put a plug in for tradition. i have a very traditional education. i spent a lot of years in silence speaking latin up in the hills, living within the medieval framework. i do respect the past. we study it. if you are grounded in tradition, you feel quite confident in change and innovation. if you are insecure, you are very reluctant to embrace the unknown. i do think we need to in our education and politics, we have to have a new appreciation for our traditions and the patterns that describe our culture and our being as americans. having said all that, we have
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saved in california tens of billions in energy efficiency. when i first adopted those, people reacted negatively. we pushed ahead. and now in california we have ab 32. signed by a republican actor turned governor. promoting something i pick up on and promote further. the number of people in silicon valley defended ab23 against -- ab32 against an onslaught of texas oil companies. we defend when they tried to block your business. california gets 50% of the venture capital. there is a lot going on here. we want to promote that. innovation is difficult because by definition, is of the few,
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not the many. that is the culture we want to encourage both in our schools, by minimizing, not getting overly obsessed with testing, and reducing learning to bubble in a multiple choice response. it is not literature, science, innovation, or creativity. it is not innovation. we need rigor and imagination. you need both. you have the left hand and the right hand. we have to combine those things. in california, we create innovation by ab32, but the only state with the cap and trade program, we create it by cutting regulation. i had to fire two incumbent
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people in our division of conservation. there were blocking oil exploration. i fired them and the oil permits for drilling went up 18%. we have to work on many levels. we're promoting efficiency. we're promoting and renewable energy and climate change -- i take courage change very seriously. we have got to do with it and there is a lot of resistance. but we deal with that through enlightened government policies, feedback, and changing them when we find they do not work. and encouraging the private sector where the ideas come up. i do not think -- steve jobs working in his career came up with stuff. i did not know that steve jobs was working in that group on the computer. we want to have space for that.
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we need space for innovation, it is a constant challenge. the power of the conventional is so overwhelming and the convergence is so powerful that to try to innovate is exhausting in government. let me tell you. in spite of that, i am ready for several more years of innovation. i hope you are. i hope california is. [laughter] [applause] >> for this next question, let's pretend that president obama is sitting in this chair. but pretend this is a private room -- let's pretend this is a private room. we need everyone out there to be quiet. if you were here along with the president, what are the two things you would tell him you need to make your state more competitive or all states more competitive? >> i think and i am an unabashed
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supporter of the president. i do not think all his policies are perfect but he has done a remarkable job of coming into an almost impossible situation in dealing with it as best you can. i can -- would look at the programs that have already embarked on the investment of making sure the government supports research at the deepest trouble and is providing not just grants but tax credits. the focus on making sure that we're building a culture of innovation. colorado is the last three years when there were no jobs anywhere, more 25-34 year-old came to call rudder than any other state in the country. -- colorado more than any other state in the country. we want to make sure they are employed in innovative companies that have an opportunity for full education and research.
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there has to be a culture fun -- from the federal grant all the way down in research. they should hammer out what the appropriate compromise is to repatriate all those overseas profit corporations are not putting back into our or economy. the largest beneficiary would be california. we want to see what the cutting edge is. most of a still look for california. -- loomost of us still look to california. what governor brown said about the traditional politics is all about taking the thing in making it fresh. to a certain extent, i tried to be a writer in college. i failed miserably. a professor said everything has been set but not everything has been said superbly. even if it had, everything must
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be said freshly again and again. you have to see a fresh lead to a certain extent. the real issue with -- in terms of asking the president, what are the things that matter most, a bass part of those profits would be invested in california. colorado would have a significant -- pretty much every state in the country would benefit. you look at the companies based in silicon valley. they have offices, you want to expand your business, think about those young people in colorado. everything -- stated say the same thing. that money would get spent over the country very rapidly. >> thank you. governor brown. >> it is a good idea to bring back that $1 trillion sitting out there. how to do that, it remains to be seen. but then that will require some other tax.
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that would be my big request like everybody else. get america's finances under control and that will take both parties. it will take taxes and it will take reduction in commitments that have been made. it now can be validated. let's get this but do it in a way that exacerbates the uncertain economy. the second -- we have to happen through innovation. whether it is the space program or tax credits for renewable energy. all that is important. we have to keep that going. that will get hard because we will face is demographics.
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that is my 74th birthday on april 7. i am aware of the and aging population which i have become and we are an aging population relative to what we were. luckily, we have millions of fresh arrivals that are younger and are energetic and they come from all over the world. we have to make sure our education system lifts them to their highest aspirations. when the society ages, it tends to -- it declines. that is the big demographic imperative. i was reviewing one of my favorite books on the roman republic. how did this village on the tiber grow to be the absolute leader of the known world in a few hundred years? it expanded its territory by plunder, by what ever.
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details. it was not pretty. [laughter] it added people, it kept getting bigger and incorporated the people and to roman citizenship. it became very consolidated, expanding group of energetic people. and they'll work. they were not just a bunch of talkers, they were doing. -- there were doers. -- they were doers. we have to consolidate on this. we have to find the common path that will enable us to make the investments and undergo the sacrifice that is required because it is not all ice cream and cake here. you have to curtail consumption.
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whether it is a business or household. in terms of -- the free sector. it is still the same game. looking out for the future, saving for tomorrow and investing that savings and. that is what we have to do. i think it is a tough order of this matter of innovation is part of it. but also getting us to come together. we can talk about regulation and pension and taxes and the government. a lot of that is [inaudible] a survey said housing prices are too high and that is a negative factor on recruitment. i thought, maybe we can bring the prices down. foreclosure works magic. i do not think you want that. you want rising wealth which could translate into a rising houses -- housing prices.
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you can increase density and breakdown similar rules, you get more people. there's a lot of things. as i drove down here from oakland cut -- oakland, i saw those cars in the ordinary lanes. one person per car. you have this one person with all this steel and plastic and oil. it is ridiculous. we're figuring out ways to do that. whether it is high speed rail or electric cars. the first will be rolling off the factory in treatments in the next few months -- in three months and in the next few months. yes, the innovative companies are small. the electric cars -- the tanks are small but so is fairchild
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or in tal or hewlett-packard -- intel or hewlett-packard or steve jobs. the seats we plant brings the vast forests of new products and new technologies and new patents in the future. that is where we have to -- we have to keep our eye on the main thought here. that is the discipline, the imagination, and the investment. that is what makes california -- that is why people are still coming here. they're not staying in colorado, i am sorry to say. they're right here. [applause] >> just briefly, setting aside plunder for a moment. >> i am sorry about plunder. it is a big part of wealth creation. >> could you talk briefly about your turn initiative? >> it is going well.
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mike rossi is leading the charge. i have met with what i think will be the next president of china. we have delegations from china to come here. we're sending delegations there. this is not just business as usual. we're getting detailed committees and proposals, a couple of the key states. we want good coming this way. we want good going out way. -- goods coming this way and we want goods going out that way. >> are you doing anything like that? >> we have been working on the north-south access. we have a biannual that denver works on that brings people
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together for cultural, business, intellectual exchange and focuses on mexico and chile and brazil. one of the great things we're missing right now, it is part of the root of this mess about it -- immigration. our partners are right there. those old movies where people -- there was the girl next door, and the hero tries to fall in love with some likely candidates. she turns out to be loyal and ticks down her hair and -- takes down her hair and glasses. that is mexico. brazil and you'll get all those countries, we have to go look at china. we have to reach out to india. i went down to mexico on an economic development mission and was the first governor to go there in four years from any
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state. we're missing a tremendous opportunity. >> thank you. governor brown, i'm sure you know that on any given da people from other states are knocking on doors of co's in the valley and trying to get them to expand in other states or move to other states. someone in this room may have engaged in that. >> they cannot all expand in california. we are try to help california. quex their offering tax breaks. >> we are not offering a break. >> not only you. what do you say to the ceo's? what are you trying to do it? what are two or three things you are doing to keep companies here? >> we take specifics. i met yesterday with the representative of nissan and they're very interested and
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supportive of the installation of high-speed chargers throughout california. we have a plan, criticized by some but nevertheless, well funded by a legal settlement of $100 million. to get these charging stations in throughout the bay area and down the coast to los angeles. they sold 5000 electric cars and they want to keep expanding. problem, permits. some people are making it hard, some cds are making it too difficult to get these charging stations up and running. we will deal with that city by city and we will have success. secondly, the utility's charge various fees to set up and provide the electricity. we want to make sure that it is cost recovery and to not be
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unreasonable. we meet with them if their problem and we react. through the public utilities commission, through local regulation, we react and try to do everything we can to solve problems. if you are talking about deals like if you come to california, we will pay 7000 for any job, we have a little bit of that but it is hard to pay people for their business activities. we do not have enough money. they're doing that all over the state. cutting deals. we are doing that in some respects. it is our race. how does michigan spent so much subsidy attracting -- michigan is not doing that well. you have some money but what about other things to invest in and take care of?
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we want to make our regulatory climate more transparent. we have a long way to go. we are open and ready to go. there is a lot of people who want to keep the regulation complicated or make it worse. it is -- this could be something, you have to fight and crush opposition to change regulations. it is not a paper exercise. it is a contact sport. you have to understand that. the world is like that. we look for things and wherever we can, will do it. it is very hard to cut people a tax break. we have been in the hole for 10 years. i think you have to cut and find more revenue. there are various ways to can do that. we are a high-cost state. america is a holocaust -- a
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high-cost country. that is why, that is the way the world this. we're 4% of the world. an aging 4% with an emerging from a powerful china and india and brazil and other countries. we have to be smart to be competitive by lowering people's wages for reducing various benefits, that is problematic. the ceo's do not say you have to reduce my salary. what about for the secretary or the janitor, the person at the front desk, or the computer pro career? we have a balance here. you pull over here and push over there. we will do our best and we cannot always beat texas. you can go to arizona and do
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your work out of there. a lot of people still move to silicon valley because of the synergy of so many bright people. if you can get the right people, get that cleaned up so we can bring smart people here and keep them here, we will keep adopting the game. [applause] >> governor hickenlooper, this is your chance. you have here a room full of silicon valley executives. what do you say to them to get them to expand or move to colorado? >> can governor brown leave the room for a minute? >> i am a great believer that luring companies from one state to the other does not help the country. i think it is a race to the
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bottom. as the governor would say. it is useful for us to be as relentlessly pro-business as we can. we're very focused on education and we want to be the no. 1 state for solving this riddle that this country has become from being the no. 1 public education nation to one in the bottom half. we know the things -- at risk kids are coming from difficult neighborhoods and often broken families, they need a longer school day. that is nothing new there. there's another way to do that without spending a bunch of money. you can get your teachers union to agree to stagger the school day. some teachers come in early and you have study hall, some come in later and you have sports after school. there is a bunch of ways to address education. great teachers more than parent involvement or anything, you put a great teacher in front of a
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kid, they work miracles. i think our goal is to say that we're going to fix education. we're working statewide to begin to implement. we do not want them filling out multiple choice tests but you have to measure the effectiveness of a teacher. our goal is sitting down with the union and having them at the table to say, how do you help us figure out, i was a geologist. i thought i would be a great geologist. i got laid off. i would still be a geologist. it turned out i was not that good a geologist. not too much fun to say but the facts are the facts. i was 20 times better running restaurants that i was a geologist. i had a much happier -- i tell a lot of my friends by not being willing to allow natural turnover, competition and success, it you are condemning 15 or 25% of the teachers to not
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fighting the joy they should have the opportunity to find. those kinds -- that will be the real competition. silicon valley will be here forever. governor brown is right. this crucible of creativity and talented share will continue to create companies that are correct again. the immigration issue to making sure that smart calendar people can stay here. as a nation, we should be competing. where is the best place for the next generation of entrepreneurs? the governor was saying california has -- has this forest of productivity. perhaps colorado is the way that california was 25 years ago. the cost of living is less expensive. all these people want to be here the way they wanted to be in california 25 years ago. maybe that natural competition is healthy and different states
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competing and try to be a place for we solve education and health care, and entrepreneurs who want to raise a family. if we're good enough at that, that is where ceos will want to expand. when they acquire a business, they want to put a division there. we have all these businesses and they got gobbled up by california companies. in most pates -- places, they keep their large workforce and a large group of people in colorado or texas or work in. our focus is how to excel rate that and have more of those entrepreneurs in colorado and have them stay. the old chinese proverb that one is the best time to plant a tree? 20 years ago. the second-best is tomorrow. or today. now that i think of it. if you use these proverbs, you have to get the right. i think that our goal in
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colorado is to go out and say we're not going to try to offer corporate headquarters. if someone wants to come around and -- for we get 94 out of 100 votes to pass. we're working together with the teachers' union. we want to see it in colorado. what we want to do is create a competitive and ferment over the whole country where we're trying to accelerate these entrepreneurs. >> this has been delightful. what a wonderful conversation. thank you both. i cannot think of two better governors. >> thank you. what a great job you did. [applause] >> governor brown, governor hickenlooper, please do not
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leave the stage. innovation is not popular in government. i did not get the nickname governor moonbeam by being conventional. we were give reminded that the best time to invest, 20 years ago, second best time, today. what great leaders, both of these dynamics state's half. we wanted to thank you both with just a small token of our appreciation and our deep appreciation as well to barbara of the san jose "mercury news." i know you cannot accept gifts. >> i would want to report that. >> we're hoping that sutter can accept a gift, the first dog. governor? [applause]
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and governor hickenlooper, your dear friend and our dear friend, dan gordon could not be here but we wanted to make sure you enjoyed his borough -- brew. >> as i have many times before, let me assure you. [applause] >> our photographer would like to get your photos. >> with or without the kibble? >> all right. take pictures of the view of the city that you soon went forgot.

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